Government moves to block AT&T / T-Mobile merger

[Tangent]

Instant view: U.S. government to block AT&T bid for T-Mobile | Reuters

Highlights:

The DOJ's concerns imply that they don't want less than four big national players. There had been speculation that Sprint and T-Mobile may get together, but it looks on this basis that even that would be objectionable."

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JAMES COLE, U.S. DEPUTY ATTORNEY GENERAL

"The Department filed its lawsuit because we believe the combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for their mobile wireless services.

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"Were the merger to proceed, there would only be three providers with 90 percent of the market, and competition among the remaining competitors on all dimensions-including price, quality, and innovation-would be diminished."

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JULIUS GENACHOWSKI, FEDERAL COMMUNICATIONS COMMISSION CHAIRMAN

"Competition is an essential component of the FCC's statutory public interest analysis, and although our process is not complete, the record before this agency also raises serious concerns about the impact of the proposed transaction on competition.

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HAROLD FELD, PUBLIC KNOWLEDGE LEGAL DIRECTOR

"Fighting this job-killing merger is the best Labor Day present anyone can give the American people. AT&T's effort to recreate 'Ma Cell' by holding rural broadband hostage and threatening American jobs deserves nothing but scorn.

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ANDREW SCHWARTZMAN, MEDIA ACCESS PROJECT SENIOR VICE PRESIDENT AND POLICY DIRECTOR

"This is arguably the most anti-competitive move in recent American economic history. It is heartening that the Department of Justice has withstood withering political pressure from AT&T to do the right thing for the American public."

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REBECCA ARBOGAST, STIFEL NICOLAUS ANALYST IN RESEARCH NOTE

"Based on our quick review of the complaint, we believe the filing is serious and not meant as merely a negotiating strategy to bring AT&T to the table to negotiate conditions and concessions."

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"We would be astonished if the FCC were to approve the deal while litigation is pending before the District Court."